Exim Bank To Issue Rs 700 Crore Bonds
Export-Import Bank of India (Exim Bank) is set to hit the market with a Rs 700-crore unsecured bond issue. According to an Exim Bank official, the issue will be done in tranches and the coupon rate will be market related. The size of the issue looks large as the institution has raised Rs 475 crore in the current financial year so far. The official said that the timing of the issue will depend upon the loan disbursal schedule and the maturity for the paper will be decided after judging the asset-liability profile of the Exim Bank.
The issue has been assigned 'LAAA' rating by the rating agency Icra. The rating indicates highest safety and a fundamentally strong position.
In the last financial year, the bank's disbursement grew by 9.6 per cent to Rs 1,896.40 crore.
There has been a shift in disbursement in favour of projects and corporate finance exposure to mid-sized corporates compared with traditional trade finance. The capital adequacy ratio of the institution stands at 23.83 per cent as on March 31, 2001. The non-performing asset of the bank as percentage of the total assets stands at 8.17 per cent.
The bank is planning to focus on lines of credit business in future in coordination with the government's export efforts. The financial institution is expected to receive an interest subsidy from the central government as well. It has already been made the operating agency for specific government of India (GOI) lines of credit.